Savannah morning news. [volume] (Savannah) 1868-1887, 1887-02-21
Mr.. Verdery on the New south.

In the North American Review for Feb.
ruary Mr.. Marion ). Verdery, formerly of
Augusta, but now OF New York, has an
interesting article on "The New South
Financially Reviewed"
After showing the paralyzed condition
of the South at the close of the war. Mr..
Verdery traces the return OF strength,
hope, energy and life, and briefly but
deity describes how the people adjusted
themselves to their new relations, Sand
began work with a steadfastness of pur-
pose that bespoke determination in every
energetic stroke" He then alludes to the
revival of trade, manufactures and agri-
culture, and the development Of frugality
and talent for economic management.
The most interesting part of the article,
however, is that devoted to the recovery
OF public and private commercial credit.
Taking up private commercial credit
first, Mr.. Verdery shows that corpora
tons continued for several years with
out the support of advantageous loans,
and individuals were strictly confined to
a cash basis in their Negotiations AS
illustrative OF the condition of private
commercial credit, he cites this instance:
GAS late as 1875 a prominent house in
Augusta, Ca, telegraphed a very large
establishment in New York city, asking
the price of sugar. The reply gave no
quotations, but simply said, I'VE do not
sell SOUTH" Since then things have
changed. The private commercial credit
Of the South is as good as that OF any
other section, and the New York estab-
lishment that did not ''sell South' now
sends its travelling statesmen from one
end Of Georgia to the other.
or the complete recovery of public
credit there could be no better proofs
than those given by Mr.. Verdery. He
points out, for instance, that Atlanta and
Augusta now float Al per cent. bonds at
par. OF Savannah, he says: Savannah
suffered great financial disaster, and IN
describe affection through the memora-
BILE epidemic of 1876. At this time her
Bonded debt was bearing per cent. in-
terest. The extreme depression in all
business, and consequent difficulty in
collecting taxes subsequent to the
scourge, forced Savannah to the neces-
sity of appealing for indulgence.
She made no threat of reputation,
nor asked any compromise on
the face Of her Indebtedness. but only
begged a reduction of interest on her
debt. This was allowed by her creditors,
and the floating bonds then bearing 7
were accordingly reduced in their rate
of interest TO 8 per cent, All these have
since matured. and been redeemed by
new issues bearing per cent. These
are now selling readily at several points
above par. The way in which this record
contributes materially to the evidence Of
general Improvement in the South is by
comparing the present price OF the per
cent. bonds with that at which the old
rs ruled, even before the epidemic. Such
comparison shows n marked apprecia-
ton, despite the reduction OF interest,""
or State bonds Mr.. Verdery points out
that the Georgia thIrty-year 4lz per cent.
issue were bought by a syndicate, and
81, 900, 600 of them were afterward sold in
Paris ut 1917. What Mr.. Verdery says
OF Georgia applies with almost equal
force to other Southern States.
MIR. Verdery's article, short and pithy,
is destined to do tho South good. Its
statements OF fact are accurate, and It's
conclusions are fairly drawn. To use
his words, the South "has heroically
lifted herself back TO the high and fertile
plains Of prosperity, where the present is
rich with ripe fruit, and the future blooms
with luxuriant promise"